problem1: Which of the following reasons causes bonds to be a less expensive form of capital for a public firm than the issuance of common stock?
[A] Receive greater returns than common stockholders.
[B] Do not have a contractual claim on the firm.
[C] Bear less risk than common stockholders.
[D] Have prior voting rights over common stockholders.
problem2: The debt ratio is a measure of a firm’s:
problem3: Style Corp. preferred stock pays dollar 3.15. What is the value of the stock if your required rate of return is 8.5 percent rounded to the nearest $1?